Mortgage-credit availability rises for first time in three months

The availability of mortgage credit ticked up in October, the first gain in three months, as minimum credit scores for certain products declined, according to a gauge released Tuesday by an industry group.

An index that tracks mortgage-credit availability, released by the Mortgage Bankers Association, rose to 111.5 in October, up from 110.7 in September. For context, the index hit a housing-bubble level of about 800 in 2007.

As mortgage rates trend higher, applications to refinance homes are plunging, and financial institutions are increasing their focus on loans to new homebuyers. MBA’s report echoes separate Federal Reserve data that showed a “modest” net share of banks recently reported easing their standards for mortgages.